As usual, in this contrarian period (the market does always the reverse of what the mass thinks) the Aussie had a massive rally (and technically can go up unchallenged till 78c USD.
The main culprits are the Japanese. Brexit strengthen the Yen and the yield hungry Jap investors came to Australia to gouge on…well literally everything that they can buy.
This phase will probably abate as the Yen goes back down and then if the RBA by August decreases the interest rate and could go down to 1%.
Then I do predict that soon or later Australia will lose the AAA rating as the Government will not be able to solve the issues.
So the pattern is the same…the road to get there (say 65c) is just more interesting than expected.
investorpolitico 